4 Things B2B CPOs Should Know About Shrinking Paper Payments

The business-to-business (B2B) landscape is undergoing an explosion of innovation — especially around payments.

Wednesday (Sept. 18) alone, news broke that Brex launched an embedded B2B payments solution that complements the company’s corporate card and spend management platform for startups and enterprises; while Capchase and Stripe partnered to offer a B2B buy now, pay later (BNPL) payment method in the United States.

And with the advent of new B2B technologies, payment methods, and the complexity of global supply chains, chief product officers (CPOs) across the payments industry face unprecedented challenges and opportunities in ensuring their product strategies keep up with the pace of change and propel growth and innovation.

Globally, B2B payments are more fragmented and complex than ever. Different regions, industries and even individual suppliers may require or prefer different payment methods. Traditional methods like checks and ACH transfers remain prevalent in some sectors, while newer solutions such as digital wallets and real-time payments are gaining traction.

For product leaders and the other internal teams they engage with — from finance to marketing — bringing to market, or scaling internally, solutions capable of managing this complexity requires a deep understanding of both the payment technologies and the requirements of suppliers across different markets.

Read more: Nine Things Payments Execs Need to Know for Their 2025 Business Plans

CPOs Can Drive Growth, Innovation

CPOs stand at the intersection of technology, finance and operations. There are also the rising capabilities and potential applications of artificial intelligence (AI) to consider.

Regarding the shape that future innovations could take, the 18 payments industry insiders interviewed by PYMNTS for the “What’s Next In Payments: Halftime Report” series all agreed that future payments innovation will be centered around four trends: embedded finance, digitization, compliance and technological upgrades.

And within B2B specifically, the relationship between payments and procurement is becoming symbiotic, with both functions playing a role in the financial health of businesses. Procurement teams are responsible for securing the best possible terms from suppliers, while payment processes ensure that these suppliers are compensated accurately and on time. The integration of these functions, particularly with the rise of digital solutions, is reshaping how companies interact with suppliers, manage cash flow, and approach supply chain management — all crucial considerations for CPOs.

That’s why, for CPOs, the challenge lies in managing this convergence effectively. Processes are often siloed, with a clear separation between functions. These silos are breaking down as procurement relies on real-time data and digital payments, enabling cash flow predictability, and driving greater innovation.

CPOs must spearhead digital transformations, particularly around accounts payable (AP) and accounts receivable (AR) automation, ensuring that the right technologies are implemented to improve speed, transparency, and compliance in payments.

In a sign of the strength of the B2B automation market, the PYMNTS Intelligence report “CFOs Eye Accounts Receivable as New Direction for AI Investments” found that 55% of chief financial officers representing middle-market businesses would be willing to pay 3% of the invoice amount to accept payments using a solution that automates invoice approval and payment.

Read more: 5 AI Tips CFOs and Treasurers Need to Know

Embracing Digital Transformation

Still, “almost half of B2B payments are still made via check, which blows my mind in terms of the technology that exists now,” Rebecca Schultz, chief marketing officer at Boost B2B Payment Solutions, told PYMNTS. “A quarter of AR teams are still relying on spreadsheets to manage their receivables,” she added, noting the backwardness of certain manual processes in the age of big data and automation.

Digital transformation not only streamlines processes but also enhances agility, allowing businesses to respond quickly to market changes and new opportunities. This includes leveraging AI, machine learning and other emerging technologies.

And one initiative frequently leads to another as efficiencies are realized. For example, by collaborating with suppliers, businesses can co-create new products or services that meet market demands and differentiate them from competitors.

However, adopting digital solutions comes with challenges. Integrating these tools into legacy systems can be difficult, and there is a risk of overwhelming procurement teams with too much data. CPOs must strike a balance, ensuring that their teams are equipped with the right tools without adding unnecessary complexity.

As businesses continue to operate in a global and digital environment, the ability of CPOs to adapt and innovate will be critical to their success.

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